Supplemental Guarantor Condensed Consolidating Financial Statements (Tables)

9 Months Ended

Jun. 30, 2015

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Consolidating Statement Of Income

	Three Months Ended June 30, 2015
	Parent			Guarantors			Non- Guarantors			Elims			Consolidated
Sales
External	$	—		$	461		$	448		$	—		$	909
Subsidiaries	—			34			19			(53		)	—
Total sales	—			495			467			(53		)	909
Cost of sales	(14		)	(416		)	(408		)	53			(785		)
GROSS MARGIN	(14		)	79			59			—			124
Selling, general and administrative	(20		)	(29		)	(16		)	—			(65		)
Restructuring costs	—			(2		)	(7		)	—			(9		)
Other operating income (expense), net	(2		)	—			3			—			1
OPERATING INCOME (LOSS)	(36		)	48			39			—			51
Other income (expense), net	10			(6		)	(5		)	—			(1		)
Equity in earnings of other affiliates	—			9			1			—			10
Interest income (expense), net	(47		)	7			2			—			(38		)
INCOME (LOSS) BEFORE INCOME TAXES	(73		)	58			37			—			22
Provision for income taxes	(1		)	—			(5		)	—			(6		)
Equity income from continuing operations of subsidiaries	89			28			—			(117		)	—
INCOME FROM CONTINUING OPERATIONS	15			86			32			(117		)	16
LOSS FROM DISCONTINUED OPERATIONS, net of tax	(2		)	(1		)	(2		)	3			(2		)
NET INCOME	13			85			30			(114		)	14
Less: Net income attributable to noncontrolling interests	—			—			(1		)	—			(1		)
NET INCOME ATTRIBUTABLE TO MERITOR, INC.	$	13		$	85		$	29		$	(114	)	$	13

	Three Months Ended June 30, 2014
	Parent			Guarantors			Non- Guarantors			Elims			Consolidated
Sales
External	$	—		$	382		$	597		$	—		$	979
Subsidiaries	—			41			17			(58		)	—
Total sales	—			423			614			(58		)	979
Cost of sales	(14		)	(355		)	(544		)	58			(855		)
GROSS MARGIN	(14		)	68			70			—			124
Selling, general and administrative	(28		)	(4		)	(21		)	—			(53		)
Other operating expense	—			—			(1		)	—			(1		)
OPERATING INCOME (LOSS)	(42		)	64			48			—			70
Other income (expense), net	13			(6		)	(7		)	—			—
Equity in earnings of ZF Meritor	—			190			—			—			190
Equity in earnings of other affiliates	—			9			2			—			11
Interest income (expense), net	(31		)	11			(2		)	—			(22		)
INCOME (LOSS) BEFORE INCOME TAXES	(60		)	268			41			—			249
Provision for income taxes	(1		)	(1		)	(10		)	—			(12		)
Equity income from continuing operations of subsidiaries	298			27			—			(325		)	—
INCOME FROM CONTINUING OPERATIONS	237			294			31			(325		)	237
LOSS FROM DISCONTINUED OPERATIONS, net of tax	(3		)	(3		)	(1		)	4			(3		)
NET INCOME	234			291			30			(321		)	234
Less: Net income attributable to noncontrolling interests	—			—			—			—			—
NET INCOME ATTRIBUTABLE TO MERITOR, INC.	$	234		$	291		$	30		$	(321	)	$	234

	Nine Months Ended June 30, 2015
	Parent			Guarantors			Non- Guarantors			Elims			Consolidated
Sales
External	$	—		$	1,282		$	1,370		$	—		$	2,652
Subsidiaries	—			95			52			(147		)	—
Total sales	—			1,377			1,422			(147		)	2,652
Cost of sales	(38		)	(1,167		)	(1,240		)	147			(2,298		)
GROSS MARGIN	(38		)	210			182			—			354
Selling, general and administrative	(54		)	(83		)	(50		)	—			(187		)
Restructuring costs	(1		)	(5		)	(9		)	—			(15		)
Other operating income (expense), net	(2		)	—			4			—			2
OPERATING INCOME (LOSS)	(95		)	122			127			—			154
Other income (expense), net	47			(15		)	(29		)	—			3
Equity in earnings of affiliates	—			24			4			—			28
Interest income (expense), net	(105		)	20			7			—			(78		)
INCOME (LOSS) BEFORE INCOME TAXES	(153		)	151			109			—			107
Provision for income taxes	(2		)	—			(17		)	—			(19		)
Equity income from continuing operations of subsidiaries	241			81			—			(322		)	—
INCOME FROM CONTINUING OPERATIONS	86			232			92			(322		)	88
INCOME (LOSS) FROM DISCONTINUED OPERATIONS, net of tax	(1		)	1			(2		)	1			(1		)
NET INCOME	85			233			90			(321		)	87
Less: Net income attributable to noncontrolling interests	—			—			(2		)	—			(2		)
NET INCOME ATTRIBUTABLE TO MERITOR, INC.	$	85		$	233		$	88		$	(321	)	$	85

	Nine Months Ended June 30, 2014
	Parent			Guarantors			Non- Guarantors			Elims			Consolidated
Sales
External	$	—		$	1,039		$	1,794		$	—		$	2,833
Subsidiaries	—			107			46			(153		)	—
Total sales	—			1,146			1,840			(153		)	2,833
Cost of sales	(40		)	(978		)	(1,621		)	153			(2,486		)
GROSS MARGIN	(40		)	168			219			—			347
Selling, general and administrative	(68		)	(49		)	(61		)	—			(178		)
Restructuring costs	(1		)	—			(2		)	—			(3		)
Other operating expense	—			(1		)	(1		)	—			(2		)
OPERATING INCOME (LOSS)	(109		)	118			155			—			164
Other income (loss), net	52			(14		)	(38		)	—			—
Equity in earnings of ZF Meritor	—			190			—			—			190
Equity in earnings of other affiliates	—			21			7			—			28
Interest income (expense), net	(119		)	28			(6		)	—			(97		)
INCOME (LOSS) BEFORE INCOME TAXES	(176		)	343			118			—			285
Provision for income taxes	(1		)	(2		)	(28		)	—			(31		)
Equity income from continuing operations of subsidiaries	427			75			—			(502		)	—
INCOME FROM CONTINUING OPERATIONS	250			416			90			(502		)	254
LOSS FROM DISCONTINUED OPERATIONS, net of tax	(4		)	(4		)	(2		)	6			(4		)
NET INCOME	246			412			88			(496		)	250
Less: Net income attributable to noncontrolling interests	—			—			(4		)	—			(4		)
NET INCOME ATTRIBUTABLE TO MERITOR, INC.	$	246		$	412		$	84		$	(496	)	$	246

Consolidating Statement of Comprehensive Income

	Three Months Ended June 30, 2015
	Parent		Guarantors		Non- Guarantors			Elims			Consolidated
Net income	$	13	$	85	$	30		$	(114	)	$	14
Other comprehensive income (loss)	23		30		(15		)	(15		)	23
Total comprehensive income	36		115		15			(129		)	37
Less: Comprehensive income attributable to noncontrolling interests	—		—		(1		)	—			(1		)
Comprehensive income attributable to Meritor, Inc.	$	36	$	115	$	14		$	(129	)	$	36

	Three Months Ended June 30, 2014
	Parent		Guarantors			Non- Guarantors		Elims			Consolidated
Net income	$	234	$	291		$	30	$	(321	)	$	234
Other comprehensive income (loss)	19		(10		)	19		(9		)	19
Total comprehensive income	253		281			49		(330		)	253
Less: Comprehensive income attributable to noncontrolling interests	—		—			—		—			—
Comprehensive income attributable to Meritor, Inc.	$	253	$	281		$	49	$	(330	)	$	253

	Nine Months Ended June 30, 2015
	Parent			Guarantors			Non- Guarantors			Elims			Consolidated
Net income	$	85		$	233		$	90		$	(321	)	$	87
Other comprehensive income (loss)	(21		)	(62		)	3			58			(22		)
Total comprehensive income	64			171			93			(263		)	65
Less: Comprehensive income attributable to noncontrolling interests	—			—			(1		)	—			(1		)
Comprehensive income attributable to Meritor, Inc.	$	64		$	171		$	92		$	(263	)	$	64

	Nine Months Ended June 30, 2014
	Parent		Guarantors		Non- Guarantors			Elims			Consolidated
Net income	$	246	$	412	$	88		$	(496	)	$	250
Other comprehensive income	41		—		19			(19		)	41
Total comprehensive income	287		412		107			(515		)	291
Less: Comprehensive income attributable to noncontrolling interests	—		—		(4		)	—			(4		)
Comprehensive income attributable to Meritor, Inc.	$	287	$	412	$	103		$	(515	)	$	287

Guarantor Consolidating Balance Sheet

	June 30, 2015
	Parent			Guarantors			Non- Guarantors		Elims			Consolidated
CURRENT ASSETS:
Cash and cash equivalents	$	238		$	5		$	102	$	—		$	345
Receivables trade and other, net	—			39			491		—			530
Inventories	—			163			202		—			365
Other current assets	7			18			27		—			52
TOTAL CURRENT ASSETS	245			225			822		—			1,292
NET PROPERTY	13			154			226		—			393
GOODWILL	—			277			143		—			420
OTHER ASSETS	77			122			149		—			348
INVESTMENTS IN SUBSIDIARIES	2,340			444			—		(2,784		)	—
TOTAL ASSETS	$	2,675		$	1,222		$	1,340	$	(2,784	)	$	2,453
CURRENT LIABILITIES:
Short-term debt	$	1		$	3		$	14	$	—		$	18
Accounts and notes payable	45			222			344		—			611
Other current liabilities	115			67			121		—			303
TOTAL CURRENT LIABILITIES	161			292			479		—			932
LONG-TERM DEBT	1,054			7			18		—			1,079
RETIREMENT BENEFITS	625			—			104		—			729
INTERCOMPANY PAYABLE (RECEIVABLE)	1,406			(1,712		)	306		—			—
OTHER LIABILITIES	47			212			45		—			304
EQUITY (DEFICIT) ATTRIBUTABLE TO        MERITOR, INC.	(618		)	2,423			361		(2,784		)	(618		)
NONCONTROLLING INTERESTS	—			—			27		—			27
TOTAL LIABILITIES AND EQUITY (DEFICIT)	$	2,675		$	1,222		$	1,340	$	(2,784	)	$	2,453

	September 30, 2014
	Parent			Guarantors			Non- Guarantors		Elims			Consolidated
CURRENT ASSETS:
Cash and cash equivalents	$	71		$	5		$	171	$	—		$	247
Receivables trade and other, net	1			45			564		—			610
Inventories	—			151			228		—			379
Other current assets	9			18			29		—			56
TOTAL CURRENT ASSETS	81			219			992		—			1,292
NET PROPERTY	13			158			253		—			424
GOODWILL	—			277			154		—			431
OTHER ASSETS	75			128			152		—			355
INVESTMENTS IN SUBSIDIARIES	2,185			267			—		(2,452		)	—
TOTAL ASSETS	$	2,354		$	1,049		$	1,551	$	(2,452	)	$	2,502
CURRENT LIABILITIES:
Short-term debt	$	1		$	3		$	3	$	—		$	7
Accounts and notes payable	46			230			404		—			680
Other current liabilities	97			87			167		—			351
TOTAL CURRENT LIABILITIES	144			320			574		—			1,038
LONG-TERM DEBT	916			10			39		—			965
RETIREMENT BENEFITS	656			—			119		—			775
INTERCOMPANY PAYABLE (RECEIVABLE)	1,198			(1,736		)	538		—			—
OTHER LIABILITIES	52			208			49		—			309
EQUITY (DEFICIT) ATTRIBUTABLE TO        MERITOR, INC.	(612		)	2,247			205		(2,452		)	(612		)
NONCONTROLLING INTERESTS	—			—			27		—			27
TOTAL LIABILITIES AND EQUITY (DEFICIT)	$	2,354		$	1,049		$	1,551	$	(2,452	)	$	2,502

Guarantor Consolidating Statement Of Cash Flows

	Nine Months Ended June 30, 2015
	Parent			Guarantors			Non- Guarantors			Elims		Consolidated
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES	$	76		$	19		$	27		$	—	$	122
INVESTING ACTIVITIES
Capital expenditures	(4		)	(17		)	(24		)	—		(45		)
Proceeds from the sale of property	—			—			4			—		4
Net investing cash flows provided by discontinued operations	—			1			3			—		4
CASH USED FOR INVESTING ACTIVITIES	(4		)	(16		)	(17		)	—		(37		)
FINANCING ACTIVITIES
Repayment of notes	(159		)	—			—			—		(159		)
Proceeds from debt issuance	225			—			—			—		225
Debt issuance costs	(4		)	—			—			—		(4		)
Repurchase of common stock	(30		)	—			—			—		(30		)
Intercompany advances	63			—			(63		)	—		—
Other financing activities	—			(3		)	(4		)	—		(7		)
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES	95			(3		)	(67		)	—		25
EFFECT OF CHANGES IN FOREIGN CURRENCY        EXCHANGE RATES ON CASH AND CASH        EQUIVALENTS	—			—			(12		)	—		(12		)
CHANGE IN CASH AND CASH EQUIVALENTS	167			—			(69		)	—		98
CASH AND CASH EQUIVALENTS AT BEGINNING        OF PERIOD	71			5			171			—		247
CASH AND CASH EQUIVALENTS AT END OF        PERIOD	$	238		$	5		$	102		$	—	$	345

	Nine Months Ended June 30, 2014
	Parent			Guarantors			Non- Guarantors			Elims		Consolidated
CASH FLOWS PROVIDED BY (USED FOR)        OPERATING ACTIVITIES	$	(5	)	$	20		$	88		$	—	$	103
INVESTING ACTIVITIES
Capital expenditures	(2		)	(17		)	(20		)	—		(39		)
Net investing cash flows provided by discontinued operations	—			—			3			—		3
CASH USED FOR INVESTING ACTIVITIES	(2		)	(17		)	(17		)	—		(36		)
FINANCING ACTIVITIES
Repayment of notes and term loan	(308		)	—			—			—		(308		)
Proceeds from debt issuance	225			—			—			—		225
Debt issuance costs	(9		)	—			—			—		(9		)
Intercompany advances	(2		)	—			2			—		—
Other financing activities	—			(2		)	12			—		10
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES	(94		)	(2		)	14			—		(82		)
EFFECT OF CHANGES IN FOREIGN CURRENCY        EXCHANGE RATES ON CASH AND CASH        EQUIVALENTS	—			—			—			—		—
CHANGE IN CASH AND CASH EQUIVALENTS	(101		)	1			85			—		(15		)
CASH AND CASH EQUIVALENTS AT BEGINNING        OF PERIOD	144			6			168			—		318
CASH AND CASH EQUIVALENTS AT END OF        PERIOD	$	43		$	7		$	253		$	—	$	303